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Housing bubble in Stockholm?
Wednesday, 21 October 2015 15:22

Sweden did not have a housing bubble during or after the financial crisis.

Prices has risen sharply over the past few years, fueled by record low interests rates, hosuing shortage, interest rates beeing tax deductable and other tax rules that hinders purchases and sells of apartments and houses. The prices all over Sweden has therefore reached record levels, and many beleieve we're in a housing bubble.

Many show their concern, but few are acting. The government, the parliament, the Riksbank, the Finacial inspekction, the Assciation of banks etc, all are concerned about the price levels and the increases, but few of them are taking any action, or at least way to little action to have any effect.

Last time Sweden had a severe housing bubble that burst was in the early 1990:s. In Stockholm the prices fall 40% and it took 6 years until prices started raising again. That crash made several banks insolvent and had a major effect on the general economy, as consumtion went down drastically.